Money Services Transaction Levy Payment Guidance

Summary

This is guidance from the BVI Financial Services Commission explaining how Class A licensees under the Financing and Money Services Act, 2009 must calculate, collect and remit the money services transaction levy on outbound remittances.

• Levy rate: Class A licensees must collect a 7% transaction levy from customers on the amount of funds remitted outside the Virgin Islands, per transaction.
• Payment frequency: The collected levy must be paid to the Commission on a quarterly basis, within 15 days after the end of each calendar quarter.
• Reporting form: Each payment must be accompanied by a completed transaction levy report (Form FMS-1) showing monthly and quarterly remittance values and levy amounts collected.
• Consistency with prudential reporting: Remittance amounts in the transaction levy report must match the remittance amounts outside the Virgin Islands reported in the licensee's quarterly prudential report, except for the Quarter 2 2020 report, which should only reflect May and June 2020 remittances.

The guidance is procedural and applies specifically to holders of a Class A licence under the Financing and Money Services Act, 2009.

Key obligations

• Class A licensees must collect a 7% transaction levy from customers on funds remitted outside the Virgin Islands, per transaction.
• Class A licensees must pay the collected transaction levy to the Commission on a quarterly basis, within 15 days after the end of each calendar quarter.
• Payment of the transaction levy must be accompanied by a completed Form FMS-1 transaction levy report detailing monthly and quarterly remittance values and levy amounts collected.
• Remittance amounts in the transaction levy report must correspond with remittance amounts reported in the licensee's quarterly prudential report, except that the Quarter 2 2020 report should only include remittance amounts for May and June 2020.

Applies to

Class A licensees under the Financing and Money Services Act, 2009, money services businesses

Deadlines

• within 15 days after the end of each calendar quarter: Deadline for Class A licensees to pay the collected transaction levy to the Commission, accompanied by Form FMS-1.
• Quarter 2, 2020: Exception: the transaction levy report for this quarter should only consider remittance amounts for May and June 2020.